Carrier Network Business Growth Strategy - Nec

Enhanced Competitiveness through QCD Reforms
▌Management innovation from innovation in plant production throughout overall business, including
front-loading.
• Production innovation: Put QCD reforms into practice at production sites.
• Front-loading: Incorporate QCD at the product planning and development design stages.
Q: Quality Reform
• Strengthening of development/design
upstream processes
• Enhanced management of purchased
components
C: Cost Reform
• Setting of cost targets in anticipation
of market prices
• Thorough screening of project orders
• Increased offshore and multi-vendor
utilization
D: Delivery Reform
• Shorten total lead times
- Shortened development times
- Expand production for firm
orders
[Carrier Network Business]
Quality Loss Cost (Ratio to Sales)
0.2% Improvement
07 年 度 08 年 度 09 年 度
FY2007 FY2008 FY2009
Amount of Cost Reform (Ratio to Sales)
3.8% improvement
FY2007 07 年 度 FY2008 08 年 度 09 FY2009 年 度
Inventory Turnover Period (Liquidity)
[Main Base (NEWIN)]
In-Process Defect Rate
(Mobile Line)
Start of Production for New Models
Maintaining Zero Defects
FY2007 FY2008 FY2009
Improved Productivity (Regular Volume per Person)
2.9 times/ 3
2.9
(reference index 1.0 in second half, 2006)
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2006 FY2007 FY2008 FY2009
/ 3years
Percentage of Orders Handled with a Lead Time of
“less than three weeks”
(Supply Lead Time from Order Receipt to Shipping)
2-day improvement
Improvement
equivalent to balance
of 3.1 billion
26% increase
FY2007 07 年 度 08 FY2008 年 度 09 FY2009 年 度
1st half 07 2007 上 1st half 08 上 2008 2nd 09 half 下 2009
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